When to buy stocks?

Question

Is it a good time nowadays to buy stocks if the stocks is going down? Any opinions? Thanks in advance.

Answer 1

The best time to buy stocks is "yesterday."

In other words you can't time the market.

Dollar cost averaging is your best bet, buy stocks consistently every month.  Focus on the companies you want to buy and not the market.  A good, well run, money making company is going to be just that weather the market as a whole is up or down.

Warren Buffets best advise when it comes to market timing.  (paraphrase) "When others are greedy be cautious and when they are scared be greedy."

Well the market is scared and I'm buying a little more than i would when the Masses were greedy but i still buy when they are greedy too.

However "Don't try to catch falling knives" tries to get across the idea of not buying stocks as they are falling.  You could buy in to a stock mid way down then have to wait months (or years) for it to hit bottom then many more months (or years) for it to recover to the level you started at then have to wait for any gain.   It avoid this, again dollar cost averaging.  Rather than dumping in a lump sum, spread it out over many months.

Answer 2

Buy low sell high, that's the rule. Just be careful not to buy a stock from a company that is going belly up.

Answer 3

Buy on strength, sell on weakness.

http://jsforex.blogspot.com

Answer 4

Yes , u can buy stocks when it is down .... but c to that it should not go still further down, so do some historical calcs and research before buying it.

Answer 5

One of the great myths out there about investing, that is espoused by investment advisors, brokers, television 'experts' that even have their own shows, is 'when stocks are down they are on sale'.

Actually, if you are a trader, you can buy stocks as they trade down to areas of support and sell as they rally back to resistance. But if you actually an investor, you are far better off finding stocks that come from strong leadership groups, and new industries, when the market is in an uptrend, than to buy stocks when they are down.

This brings up major MYTH number 2. That you can't time the market. Actually this myth has been touted by the same crowd, especially mutual fund industry because mutual funds that take weeks to build a position in a company because they are buying hundreds of thousands of shares or millions of shares can't get in and out of a stock with greatly affecting its price, and therefore can't make these intermediate term bets. However, as an individual investor, you can sell your lot of 100, 1000, or 100,000 shares in a blink of an eye and either cut your losses or take profits. The key is to understand market history, which would show you that there are certain factors that are ALWAYS present during every period of time when the stock market tends to go into major rally mode, and therefore a good time to be in the market.

These factors, include signs of accumulation by big money investors, new stocks showing leadership, and the major indices trading above their 200 day moving average. None of that is currently present, so for now I would say buying now is not a good time.

Answer 6

The best time to buy your favorite pair of shoes is when they go on sale.  Same goes for stocks.  Find a stock, wait for the price to drop below average, but be sure that the company isn't going anywhere (Nike, ADIDAS, or COKE, Apple, Sony).  It is really THAT simple.

Answer 7

it's never a bad time to buy stocks. ever heard the old saying buy low sell high. since stocks have been dropping they are now low buy them and hold for the long term and you will be a very rich man. I particularly recommend investment in things like commodities and the stock markets of countries abroad particularly in south America. commodities will benefit from increasing global demand and foreign markets will benefit from industrialization and population growth.

Answer 8

It really depends on stocks you pick. You have to find right stocks. Dell, NT and KKD is doing great despite of market trend.

Answer 9

If you invest the same amount in a stock every month, on the same day, through dividend reinvestment plans, then you automatically buy more when the price is low.  Over the course of a year, you've bought stock at the best price possible.  Learn more at www.dripinvestor.com.